HiddenLayer Raises $100M and Huskeys Gets $27M as AI Security Deals Accelerate
HiddenLayer raised $100 million to protect AI models, and edge security startup Huskeys closed a $27 million round, according to SiliconANGLE.
HiddenLayer, founded in 2022, offers products that scan AI models and the packages they rely on for tampering before deployment. The company also runs red-team exercises that probe models for weaknesses and monitors live systems at the inference layer for prompt injection and attempts to steal a model, the report said. HiddenLayer said more than 50 new platform customers signed on over the past year, and its annual recurring revenue grew more than tenfold, now sitting in the tens of millions of dollars. Chief Executive Chris Sestito told TechCrunch, as reported by SiliconANGLE, that a frontier model provider with more than 700 million weekly users is among the customers; the company did not name it.
Sestito said the company set out to secure enterprise AI long before most saw the urgency. The new capital will go toward expanding the company's Agentic Runtime Security product line, and its Agent Harness Security product targets autonomous coding agents.
The Series B round was led by Delta-v Capital, with participation from Ten Eleven Ventures, Morgan Stanley, Microsoft's M12 fund and Booz Allen Ventures. HiddenLayer had previously raised a $50 million Series A led by M12 and Moore Strategic Ventures in September 2023 and a $6 million seed round, bringing total funding to about $156 million.
Huskeys, founded in 2025 by Itai Gafni and Roy Weisfeld, both of whom came from Israel's Unit 8200 signals intelligence unit, makes software that reads configurations of the web application firewalls, content delivery networks and load balancers a company already runs and centralizes them in one model. That model is used for posture assessment, policy generation and virtual patching. Huskeys says it processes more than one trillion web requests a day across its customer base. Gafni described the network edge as the place where customers, revenue and threats all meet.
Blackstone Inc. backed Huskeys to address unwanted AI traffic, according to The Wall Street Journal as cited by SiliconANGLE, and also uses the product. Other customers include TikTok, Hugging Face, Legoland and telehealth provider Ro. Blackstone Innovations Investments led the Series A, with participation from Merlin Ventures, Skinos Ventures, Zscaler Ventures, Okta Ventures, Bright Pixel Capital and SV Angel. Eran Reshef, described as the inventor of the web application firewall, is an angel investor. The round brings Huskeys's total funding to $35 million.
Blackstone Chief Information Security Officer Adam Fletcher said AI-driven traffic and increasingly fragmented edge environments require a new approach to security management, and said Huskeys is well-positioned to redefine how organizations manage edge security.